Yet in my opinion we can or any new trader can learn the skills while dedicating time with proper focus and patience.
I have traded off exchange forex (spot trading) for some time now. Overall I simply can't find another asset class that offers the consistent moves that the forex market does. Currencies just can't stay still for long. Personally, I only trade 9 pairs and that offers more than enough opportunity. Based on risk to reward setups its simply the best. I have also traded/do trade options/futures. One pro to forex is margins don't fluctuate much allowing me to hold trades for weeks and months at a time. While balancing other positions.
Pro- high liquidity, low transaction costs, low barriers to entry, and flexibility. Cons- volatile, risky, and presence of scammers in the market.
There are many pros of the forex market, such as flexibility of trading hours, market liquidity, ease of entry, lower trading costs etc. However, when it comes to cons, I don’t think it’s easy to directly put them under one category. For instance, market volatility and high leverage can both be considered as advantages and disadvantages of the forex market. It depends how a particular trader takes it.
The forex market still has the highest liquidity and low commission cost. Volatility can be considered both risky but also more opportunities for trading. As someone mentioned above, the threat of scam brokers is also very dangerous. That is why when choosing a broker, you should always look for a regulated one (ASIC/FCA/Cysec) and say no to any broker that promises you a big profit when you invest in the market.
Rightly said! Without knowledge and skills, not only forex but surviving any market becomes impossible, which is why I see so many expert traders suggesting newbies learn and practice as much as they can before starting live trading because they know that trading without any knowledge and practice will fetch bad results.
The forex comes with a lot of pros, such flexibility, low barriers to entry, and high liquidity. It can be your business if you possess the skills. But like not everyone can do a business, forex trading is not everyone’s cup of tea. You need to do everything in a calculated approach to become profitable.
According to me all the pros may become cons if traders trade without a concrete strategy. But traders can convert these cons into pros by sticking to a solid trading plan consisting of a calculated trading plan and risk management strategy.
Benefits of the market include convenient trading hours, high liquidity, and ability to trade on margin. Also, starting with forex trading doesn’t require a huge capital. Low deposit requirement makes it easily accessible to beginners. Regardless of its benefits, there are some cons. Forex market is highly volatile. There are hundreds of factors that impact currency price movements. Because of which, it can be difficult to predict the market. Moreover, forex trading requires a certain set of skills to become profitable. Acquiring those skills requires consistent efforts, which not many are ready to put in.